Sole Source Capital has closed its inaugural funds, SSC Partners I LP and SSC Partners I-A LP, at the combined hard cap of $160 million.
Sole Source is an operationally-focused lower-middle market private equity firm that targets controlling interests in manufacturing, distribution, and industrial service companies that have from $50 million to $200 million of enterprise value. The firm is based in Santa Monica, CA (www.solesourcecapital.com).
Sole Source was founded in 2016 by its managing partner David Fredston to focus on private investments in founder-owned companies as well as corporate carve-outs and management buy-outs. Prior to founding Sole Source, Mr. Fredston spent six years with The Gores Group as a Principal and Global Head of Deal Origination. Sole Source’s other partners include Dewey Turner III, Scott Sussman and Bradford Rossi.
“We are pleased to close our first fund at our hard cap and are grateful for the strong support of our investor base,” said Mr. Fredston. “We have built an exceptional team that is focused on executing our strategy at each stage of the investment process and poised to generate impressive results for our investors. With experience in business development, financial diligence, M&A execution and driving operational excellence, we are eager to work alongside management teams, through collaborative partnerships, to create meaningful value for our investors and portfolio companies.”
The new fund has already invested nearly one-third of its committed capital in three companies. In November 2018 the fund acquired Individual FoodService (IFS), a Bell, CA-based nonperishable foodservice distribution company. At closing, the operations of IFS were combined with Los Angeles-based Trade Supplies, a nonperishable foodservice distribution company that was acquired in June 2018. The combined company operates under the IFS brand.
In February 2018, the fund acquired Premier Flow Control, an Odessa, TX-based provider of oilfield services and equipment rental. Sole Source expects the new fund to be 50% deployed and allocated by the end of the first quarter of 2019.
Kirkland & Ellis (www.kirkland.com) provided legal services for this fundraise.
© 2018 Private Equity Professional | November 30, 2018